Global multilateralism is challenged, particularly with respect to trade, by regional arrangements such as the
European Union
and
NAFTA
, although these are not in themselves incompatible with larger accords. The original sponsor of post-war multilateralism in economic regimes, the United States, turned towards unilateral action and in trade and other negotiations as a result of dissatisfaction with the outcomes of multilateral fora. As the most powerful nation, the United States had the least to lose from abandoning multilateralism; the weakest nations have the most to lose, but the cost for all would be high.
[11]

When enacting foreign policies, governments face a choice between unilateralism,
bilateralism
and multilateralism.

Bilateralism means coordination with another single country. Multilateralism has attempted to find common ground based on generalized principles of conduct, in addition to details associated with a particular agreement.
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argued that: power asymmetries predict the type of structures, bilateral or multilateral, that offer the most control. If small powers try to control a larger one, then multilateralism is effective. But if great powers seek control over smaller ones, bilateral alliances are more effective.
[12]